Research On Kaisa’s Deleveraging Strategy,Effects And Countermeasures

Since 2008,the scale expansion achieved through borrowing has kept the leverage ratio of the real estate industry at a high level.Since the development of real estate is closely related to all walks of life,the potential risks of high leverage will not only hinder the healthy development of the real estate enterprises themselves,but may also affect the entire society and eventually cause an economic crisis.In order to solve the problem of high leverage,the state first proposed to "suppress asset bubbles" in 2016,and adhered to the main policy of "housing,not speculating",and launched a long-term regulation on real estate.From the "purchase restriction and loan restriction" to the new regulation of "three red lines",the central government’s policy on deleveraging has been deepened at different levels.How to quickly and effectively deleverage is a problem that real estate companies need to solve urgently.This article starts with the current situation of Kaisa’s financial leverage,and finds that due to its expansion strategy in the early stage,its own capital needs continue to increase,and the poor operating performance puts pressure on the company’s funds.Considering the impact of equity concentration and other factors,Kaisa’s financing method relies heavily on debt financing,resulting in high corporate debt and a high asset-liability ratio.In order to reduce the leverage ratio,Kaisa took various measures from the financing side,investment side,and operation side.By adjusting the debt maturity structure,adopting multiple financing methods,establishing investment partnerships,and changing business models,the three red line indicators were finally successfully reduced to a safe range.But at the same time,Kaisa’s financing costs remain high,the hidden debt repayment pressure is high,the liquidity crisis is highlighted,and the long-term development growth rate is limited.Looking at the problems in the process of deleveraging,Kaisa mispositioned the target of deleveraging on the rapid reduction of the surface value of the indicator,and adopted some short-sighted measures,but ignoring the long-term development of the enterprise.Therefore,based on the specific situation of the enterprise,the following countermeasures and suggestions are put forward: the first is to change the misconception of deleveraging;the second is to strengthen the control of financing costs by formulating foreign exchange hedging policies and exploring low-cost financing channels;the third is to effectively use financing tools under the premise of reasonable compliance;the fourth is to divest inefficient projects in a timely manner,actively seek strategic investors,and adjust Good corporate investment strategic planning;the fifth is to strategically shrink the diversified development in a timely manner and focus on the development of the main business with advantages.Only when "deleveraging" and "stabilizing growth" are promoted in concert can deleveraging be truly achieved.